More Women Now Facing Increased Financial Stress

Written on the 11 March 2021 by Parkside InvestorPlus

While we are all trying desperately to forget the year that was 2020 and we may even be thinking the pandemic may be subsiding, one thing is certain for sure there were and still are many casualties because of the pandemic this is not just from the perspective of health there were serious financial casualties as well.

In terms of industries, certainly travel, hospitality, events and entertainment have borne the brunt of the pandemic, but there is a significant demographic that also suffered and are still feeling the pains of the Covid.

And that is Women.

Are women suffering more financial stress?

There have been several surveys conducted to answer just this question.

New research has shown that 47% of women across the world experienced financial stress due to the coronavirus pandemic.

A global study of 8000 women worldwide, from Avon revealed:

• 92% of women feel increased pressure over the pandemic
• 57% of women have increased feelings of doubt in themselves
• 41% have lost confidence

Another survey from Fidelity, conducted in early February 2021 (among 2007 US adults) found that 79% of women were experiencing financial stress up from 67% in October 2020.

What's driving financial stress in women?

As we navigated 2020, we all had to manage and adjust to a significant number of challenges (putting it mildly).

In doing so, by and large, women notably were affected by:

• The need for home schooling
• Not being able to see loved ones
• Job security in general

The resultant feelings included anxiety, isolation, lack of motivation and self-doubt.

Woment Bouncing back

The pandemic has certainly set back the many forward strides in gender equality and diversity as many women are choosing to either downshifting their roles in the workplace or even worse, withdrawing from the workforce.

Dubbed the 'she-cession', the driver seems to be that women feel their voices will not be heard or no one is interested in hearing or even worse it is an environment of every 'man' for 'himself'.

However, the same study mentioned earlier by Fidelity, found that 71% of women surveyed indicated they intend to 'take action with their money in the next six months'.

These women indicated their short term priorities were:

• Pay down debt
• Create a budget
• Create a financial plan

Longer term priorities included shoring up their retirement savings and investments outside retirement.

This is the silver lining independence and taking control.

From Baby Boomers to Gen X to Gen Y each group have their own objectives ranging from setting up wills and legacy documents, through to actively engaging a financial planner to help them meet their retirement goals.

One thing is for certain, the pandemic has caused many groups and demographics to rethink and revaluate what is important to them now and in the years to come.

At Parkside, we can help you align your aspirations and values with a financial plan so you can meet your retirement goals.